Started in 2019 as a project of public interest, with the support of the Municipality of Ulcinj and the relevant Ministry of Agriculture, "Kuća maslina" today is a luxury hotel with a restaurant and privately owned apartments, built in the heart of the olive grove in Valdanos, where any construction of this type is strictly prohibited.
In November 2019, the municipality of Ulcinj issued a building permit to Hurija Cung for the construction of the "House of Olives - an object of public interest" and it provided for the construction of an object of nearly 700 m2, with a basement for processing olives, a ground floor for tasting, seating and reception goods, while offices, archive and meeting room are left for the first floor. In September of this year, the Ulcinj Secretariat for Urbanism issued a use permit for this facility.
However, the situation on the ground is significantly different and reveals that a luxury hotel has been built on a plot in the very heart of the olive grove in Valdanos, the construction, dimensions and purpose of which do not correspond to what is referred to in the official documentation as "Olive House - an object of public interest".
There is a facility called "Mashtra - TheOliveHouse" on the field, and data from the Booking.com website show that it was possible to rent apartments in that facility as early as August of this year. The facility is managed by the company "Olimare" owned by Huria Cungu.
That there is no mention of public interest in this story is also confirmed by satellite images, from which it can be concluded that olive trees were cut down or moved during the construction of the building. While felling and moving old trees is prohibited by law, moving younger trees requires a permit.
However, the relevant Ministry of Agriculture states that such requests were not submitted, while the company "Olimare" did not respond to journalists' questions about whether they cut down or moved olive trees in the process of building the facility.
The building "Maslina House" was built in the Valdanos olive grove itself, where construction is prohibited by the Ulcinj Spatial-Urban Plan (PUP), and which, according to the umbrella planning document for the Ulcinj municipality, is intended exclusively for olive growing. Additionally, according to the Law on Olive Farming, in olive groves, among other things, "the construction of residential buildings is prohibited, except in the case of reconstruction and upgrading of already existing buildings", but buildings necessary in the process of olive production can be built.
Support from the Ministry of Agriculture
In July 2020, the company "Olimare" and the Directorate for Payments of the former Ministry of Agriculture and Rural Development concluded a contract that provided for the allocation of support in the amount of nearly 140.000 euros, within the "IPARD 2 2014-2020" program. This program is intended exclusively for financing projects in the field of agriculture. The contract states that the grants are intended for the purchase of equipment and the furnishing of space for the production of olive oil, as well as for promoting the product. Nowhere in the contract is the possibility of a catering function of the facility stated.
In June of this year, an annex to the contract was concluded, the amount of aid was reduced to 125.000 euros, and the investment was supposed to be finished by December 10. The possibility of using an advance in the amount of 50 percent of the total amount has been added.
From the Directorate for Payments of the Ministry of Internal Affairs and Communications, when asked to submit all documents on the payments of LLC "Olimare", they replied that according to their records, LLC "Olimare" has not yet submitted a request for the payment of support funds, so the support funds could not be paid to him.
The obvious hospitality purpose of the facility raises the question of whether the obligation from the contract has been violated according to which "Olimare" during five years from the signing of the contract "will not make a fundamental change in the investment that is the subject of the contract, which would affect its nature, goals and conditions for application, which would lead to a reduction of its original goals".
They did not answer the question whether the Ministry and the cabinet of Minister Aleksandar Stijović believe that there has been a violation of this provision of the contract.
In the contract, it is precisely defined that the money can be spent in the following way: for olive growing equipment parts, almost 55.000 euros, for various construction works, 68.000 euros, and for waste management costs, more than 2.000 euros. The total value of the investment applied by "Olimare", according to their calculation, was almost 300.000 euros. Nevertheless, the Ministry determined the amount of 250.000 euros as actual costs, of which it approved aid in the form of half of that amount.
"Olimare", in turn, undertook to develop capacities for the production of olive oil in the amount of at least 10 kilograms per year by December 500 of this year. The company did not respond to the question of whether they have started production in that capacity, and if not, when they plan to do so.
In the contract, the directorate undertook to carry out on-site control of the investment. When asked how many times the control of the project was carried out, it was explained that the controls were not carried out "because the request for the payment of support funds has not yet been submitted".
This reasoning is not in agreement with the contract, which stipulates that the Ministry has the right to control the project "on site at any time and at any stage of implementation", starting from the date of signing.
When asked to express their position regarding this case, Stijović's cabinet decided to remain silent. They did not even answer questions about whether they were previously aware of the situation, what they had done about it, and whether they would do anything in the future.
Inspections - neutral within their competences
Of the three inspections to which MANS reported this case, none found any irregularities. Thus, the agricultural inspection responds that during the inspection in December 2020, it was established that "the facility for the production and tasting of olive oil was built on the basis of a municipal decision, and that during the inspection it was established that there was no felling or destruction of olive trees". In the answer signed by inspector Dragana Kandić Perović, it is noted that no document was found anywhere that the Valdanos olive grove is a protected area.
The Directorate for Inspection Affairs and Licensing of the Ministry of Ecology, Spatial Planning and Urbanism (MEPPU) showed disinterest in responding to the problem, distancing itself from its official duty, which by nature falls under the jurisdiction of this institution.
Originally, in January, MANS submitted an initiative to initiate proceedings due to construction in a protected zone, to which the urban planning and construction inspector Jovan Martinović stated that "the construction of the building, which has a building permit issued to Cung H. Hurija from Ulcinj for the construction of a local building, is in progress of general interest - Houses of Olives".
They did not answer questions about why the inspection did not respond to several letters and requests from local NGOs - MOGUL and MSJA, which continuously warned about illegal construction. On the expanded initiative, submitted in September of this year, they once again stated that the appropriate permits were issued for the facility, but also clarified that the duty to control the facility does not belong to them, but to the Municipal Inspection of the local administration.
In the end, the Environmental Inspection of the Directorate for Inspection Affairs stated that an environmental impact assessment was carried out for the project, as well as that a decision was obtained according to which "it is not necessary to prepare a study for the project".
The Environmental Protection Agency, in its response to an inquiry regarding the construction of a facility in a protected area, states that the olive tree is not a protected species, as if the given cadastral plot is not protected either.
The authorities were silent for a year, now they would like to ban any construction by amending the law
In December 2020, the media reported on the construction of the "House of Olives", which received a building permit, although the PUP of the Municipality of Ulcinj does not envisage construction in the Valdanos olive grove. At that time, the Ulcinj Secretariat for Spatial Planning, upon inquiry by the NGO MOGUL, responded that the permit was issued because it was a building of public interest. Activists Džemal Perović and Zenepa Lika warned that this is about the devastation of space, and that it is very likely corruption.
The reaction of the competent institutions was completely absent after the question of Vijesti. Now, after almost a year, the catering facility is finished and fully equipped, with the capacity of luxurious accommodation for about fifteen people.
"The decision to build a building of public interest called the House of Olives in the heart of Maslinada, right next to the gate in the Valdanos bay, created a precedent that was disastrous for the entire area and olive growing," explains Zenepa Lika, president of the NGO MSJA.
"It's not just about the fact that this is agricultural land, it's also a cultural-historical and natural asset that has preserved its function for almost 2.000 years, only for devastation to occur in the 21st century."
The construction of numerous tourist facilities that are run as "temporary agricultural facilities" has been a problem for Valdanos for years.
The office of the President of the Municipality of Ulcinj did not answer the question whether they are aware of this problem and how they plan to deal with it.
At the initiative of MSJA and MOGUL, at the end of November of this year, the Environmental Protection Agency initiated the procedure of preventive protection of Valdanos and the olive grove in Ulcinj.
"This protection includes a ban on the construction of buildings, a ban on cutting down olive groves, and more active maintenance of terraces and land borders in order to prevent erosion," the Agency's announcement states.
From the olive growing sector of the MAŠV, they claim that amendments to the Law on olive growing and olive oil are being drafted, so that, if the amendment is adopted, the construction of all types of facilities in olive groves - including facilities necessary for the production of olive oil - will be prohibited in the future.
"It was precisely because of the construction problems in Valdanos that we proposed these changes. We hope for adoption by the end of the year".
All that remains of olive growing is a quote that it is a family tradition
On the Facebook and Instagram pages of the facility, "MashtraTheOliveHouse" is presented as a restaurant, and on the Booking website you can see the offer of luxury rooms and apartments for rent. An overnight stay in a room with a French bed costs 59 euros, and apartments are also available at a price of 70 euros per night. The website also states that their Mediterranean-type deli cuisine is "a limitless combination of ingredients, techniques and dishes".
The magnificent stone villa is almost completely surrounded by olive trees, and is close to the beach itself. A spacious terrace, as well as a lounge bar with a wide range of drinks, are additional details presented on the pages. Photos from the Internet show a spacious hall with stone and wooden elements, amphorae and a fountain. The only indication that the facility is essentially in the function of olive growing are the quotes on the official website: "The Cungu family has been involved in the cultivation and processing of olives for centuries... and we are continuing the family tradition with this Mashtra project".
This text was prepared as part of the project "Support to Investigative Journalism in Montenegro", which is implemented by the NGO MANS with the financial support of the US Embassy in Podgorica through the 2020 Media Professionalization Support Program. The opinions, findings, conclusions, or recommendations expressed herein are those of the authors and do not necessarily reflect the position of the Department of State/US Government.
Bonus video:
